Three people were killed and dozens wounded on Monday in an explosion of an engine of a tug on a shipyard in the Suez Canal during maintenance work, security officials said. The traffic in this important waterway linking the Mediterranean to the Red Sea was not affected, according to the officials. The explosion caused a major fire on the tug, sources said.

"More than ten people were injured in the fire, suffering from burns of varying degrees," said an official.

Earlier this week, the Egyptian daily Al-Ahram reported that "the authorities have foiled a terrorist plot by Iranian agents to hit an Israeli ship that would pass through the Suez Canal."

The newspaper said two Egyptian citizens were arrested and an investigation was opened by the authorities. The initial investigation suggested that the two Egyptian suspects were approached by Iranian agents who gave them instructions and methods to carry out the mission.

Investigators believe the two suspects tried to enlist a third man to carry out the attack. The latter was offered $8 million.